New condos drive down rents

PHOTO: New condos drive down rents

SINGAPORE - A wave of newly-completed condominiums is increasing the supply of rental homes in the market, forcing landlords to lower their asking rents to beat the competition. And more cuts might be on the way as the number of private homes to be completed this year is projected to rise 62 per cent from last year, property consultants say.

At Pasir Ris' NV Residences, which received its temporary occupation permit (TOP) in January, asking rents for three-bedroom units have fallen from $4,000 to less than $3,500 a month, said Mr Chris Koh, director of property consultancy Chris International.

Data from the Urban Redevelopment Authority (URA) last week showed that residential rents rose 0.3 per cent in April to June from the preceding three months, the smallest rise in five quarters. One key reason is the surge in supply. Experts say 16,742 private homes are expected to be completed this year, up from 10,329 units last year.

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